OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE

 3500 DEFENSE PENTAGON

 WASHINGTON, DC 20301-3500

SUSTAINMENT

MEMORANDUM FOR SUPPLY DISCREPANCY REPORTING PROCESS REVIEW 

 COMMITTEE 

SUBJECT: Approved Defense Logistics Management Standards Change 1430, Supply 

Discrepancy Reporting and Storage Quality Control Report Split Disposition 

Procedures 

 The Defense Logistics Management Standards change, as outlined in the attachment, is 

approved for implementation. 

 Addressees may direct questions to Ben Breen, e-mail: DEDSO.SDR@dla.mil. Others 

must contact their designated Process Review Committee representative available at 

https://www.dla.mil/Defense-Data-Standards/Committees/Contacts/. 

Leigh E. Method, SES 

Deputy Assistant Secretary of Defense 

for Logistics 

Attachment: 

As stated 

cc: 

OUSD(C) 

DLA J6DS 
DEDSO Use Only - ServiceNow Change Request: CHG0034848 

Attachment, ADC 1430 

 Page 1 

Approved Defense Logistics Management Standards Change 1430 

Supply Discrepancy Reporting and Storage Quality Control Report 

Split Disposition Procedures 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Technical POC: Defense Logistics Agency (DLA), DLA HQ, J-345, Troy Brown, 

(717) 770-3120 or DSN (771), Troy.Brown@dla.mil

b. Functional POC: Defense Enterprise Data Standards Office (DEDSO), Ben Breen. 

DoD Discrepancy/Deficiency Reporting Administrator, (614)-692-2317 or DSN (850), 

Benjamin.Breen@dla.mil

2. REASON FOR CHANGE: Significant changes after staffing the proposed change are in green 

shade 

a. Bottom Line Up-Front: This change addresses instances when Supply Discrepancy 

Reports (SDR) and Storage Quality Control Reports (SQCR) require split disposition provided 

by the action activity. The split disposition will only apply when the action activity is requesting 

the discrepant total quantity to be placed in supply condition codes (SCC) that do not remain in a 

suspended condition code. For example, there are 10 pieces on the SDR/SQCR and the action 

activity would like five pieces to be placed in SCC A - Serviceable (Issuable Without 

Qualification), and the remaining five pieces to be placed in SCC H - Unserviceable 

(Condemned). When the SDR or SQCR disposition instructions require discrepant item(s) be 

shipped, the action activity must transmit the Materiel Release Order/Disposal Release Order 

prior to shipment. This change will not apply for SDRs reporting missing serial numbers. 

b. Background: On March 15, 2022, SDR and SQCR stakeholders from DLA and 

Army met with DEDSO to discuss questions culminating from the Army Logistics 

Modernization Program implementation of Approved Defense Logistics Management Standards 

(DLMS) Change (ADC) 1377C, Transmitting Storage Quality Control Reports Update to DLMS 

842 A/W DLMS Notes in Supply Discrepancy Report Transmission (Reference 10.a). During 

the meeting, the split disposition scenario was discussed, and it was determined that there were 

no processes in place to accommodate SDRs or SQCRs where a split disposition would be 

required. 

3. CHANGE IN DETAIL: 

a. Technical Details: 

(1) The SDR/SQCR action activity provides disposition instructions using the 

current SDR/SQCR reply process flow. 

(2) The SDR/SQCR action activity will use standard interim Reply Code 104 

- Additional information required from submitter; see remarks., to request additional information 

from the original submitting activity as needed and provide disposition using the standard 
DEDSO Use Only - ServiceNow Change Request: CHG0034848 

Attachment, ADC 1430 

 Page 2 

process. 

(a) In cases where an SDR/SQCR requires a split disposition, the action 

activity will submit the SDR/SQCR disposition instructions reply with two or more reply codes 

(Reference 10.b) for each disposition in the remarks field as needed, e.g., Reply Codes 110 - 

Disposal authorized in accordance with local procedures, and 130 - Place materiel in stock as is. 

The responder will need to reference the reply code and specify the quantity to the 

corresponding disposition instructions in the remarks field in long text. 

(b) In cases where the assets have Serial Numbers (S/N) or Unique Item 

Identification (UII) requirements, and the action activity wants to disposition by S/N or UII, they 

will provide the exact disposition instructions to the corresponding S/N or UII they desire in the 

long text, in addition to the systemic disposition. 

(c) When the disposition instructions exceed the capacity of the remarks 

field (800-character limit in Defense Automatic Addressing System WebSDR and 700 

characters in Distribution Standard System), the action activity will annotate in the remarks 

field that an email was sent to ddcbsmqn@dla.mil with additional information. This allows for 

systemic disposition and an audit trail for the disposition that was sent offline (Reference 

10.a.). 

(d) Once disposition and associated instructions are provided, the SDR 

can be closed using the normal SDR/SQCR processes. 

b. Revised Transaction Flow: Standard SDR/SQCR process flow applies. 

4. IMPLEMENTATION TARGET: Upon Approval.

5. TECHNICAL IMPACT: 

a. Additions or Changes to Data Elements: No impact. 

b. Automated Information Systems (AIS): No impact.

c. Defense Automatic Addressing System (DAAS): No impact. 

6. PUBLICATION/POLICY IMPACT: 

a. Defense Logistics Manual (DLM) 4000.25: This change revises DLM 4000.25, 

Volume 2, Chapter 17, Supply Discrepancy Reporting, as specified in the enclosure. 

b. Non-DLM 4000.25 Publications: DoD Components will update internal guidance as 

appropriate. 

7. ASSUMPTIONS: None. 

8. FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION (FIAR), MATERIAL 
DEDSO Use Only - ServiceNow Change Request: CHG0034848 

Attachment, ADC 1430 

 Page 3 

WEAKNESS, AND AUDIT-RELATED INFORMATION: 

a. Notices of Findings and Recommendations (NFR): None. 

b. Corrective Action Plan (CAP) Reference: None. 

c. Other FIAR, Material Weakness, and Audit-Related Information: None. 

9. END-TO-END TESTING REQUIREMENTS: Not applicable. 

10. REFERENCES: 

a. ADC 1377C, Transmitting Storage Quality Control Reports Update to DLMS 842 

A/W DLMS Notes in Supply Discrepancy Report Transmission, November 9, 2021 

b. DLM 4000.25, Defense Logistics Management Standards (DLMS), Volume 2, Supply 

Standards and Procedures, Appendix 7.28, Supply Discrepancy Report Relevant Data Elements, 

April 9, 2022 

c. DLM 4000.25, Defense Logistics Management Standards (DLMS), Volume 2, Supply 

Standards and Procedures, Chapter 17, Supply Discrepancy Reporting, April 9, 2022 

11. Approved DLMS CHANGE (ADC) 1430 RESPONSE/COMMENT RESOLUTION:

Component Response/Comment Disposition 

1. ODASD(Logistics) Signed PDC 1430 with comments. PDC updated prior to 

signature. 

2. Army Concur. As noted. 

3. Navy Concur with comment. 

Comments: 

NAVSUP has reviewed the attached PDC and concurs 

with the PDC with one suggested minor edit: 

3.a.(1) discusses the disposition process, therefore the 

sub paragraphs of (a) through (d), which are currently 

under 3.a.(2), should be under 3.a.(1). 3.a.(2) is related 

to a 104 request for more information and does not 

require sub discussion. 

As noted, ADC format 

unchanged as there is no 

impact to content. 

4. Marine Corps Concur with comments. 

Comments: 

1.The PDC does not address when a split in the receipt 

by DLA at their location and how the transaction will 

be transmitted back to the APSRs. 

2. The PDC does not offer recommendations as to how 

the new SDR system will address the split in the receipt 

associated with the MRO disposition. 

DEDSO Response: Held 

meeting with USMC on 

11/4/22 to provide 

clarification that this PDC 

does not impact the USMC 

receipt/MRO process upon 

SDR disposition. 

5. Air Force Concur. As noted. 
DEDSO Use Only - ServiceNow Change Request: CHG0034848 

Attachment, ADC 1430 

 Page 4 

6. DLA Concur with comments. 

Comments: 

1. Omit split disposition for SDR/SQCR for missing 

SN. 

2. Recommend to re-word as follows: When the 

disposition instructions exceed the capacity of the 

remarks field (800-character limit in WebSDR and 

700 in Distribution Standard System (DSS)), the 

action activity will annotate in the remarks field 

that an email was submitted to ddcbsmqn@dla.mil 

with additional long text information, due to 

character limits. This action allows for systemic 

disposition and provides evidential matter for audit 

of the disposition that was provided outside system. 

3. Numbering appears to be off/repeated 

C17.3.12.1.2.2 was already listed/use on page 1. 

Should paragraph C17.3.12.1.2.2 on page 2 be 

identified as C17.3.12.1.2.6. 

As noted. 

1. Added the following to 

paragraph 2.a." This change 

will not apply for SDRs 

reporting missing serial 

numbers." 

2. Updated narrative added 

to the ADC. 

3. ADC updated. Changed 

to read "C17.3.12.1.2.7." 

7. DAAS Concur. As noted. 

8. USTRANSCOM No response. No response. 
DEDSO Use Only - ServiceNow Change Request: CHG0034848 

Enclosure, ADC 1430 

 Page 1 

Enclosure 

Revisions to Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards and 

Procedures, Chapter 17, Supply Discrepancy Reporting 

Additions are identified by red bold italics. Significant changes after staffing the proposed change 

are in green shade. 

C17.3.12. Responsible Action Activity Response to an SDR 

[Intervening text not shown] 

C17.3.12.1.2. Replies. Action activities will reply to SDRs/SQCRs by 

submission of a DLMS 842A/R to WebSDR or via direct WebSDR input. SDR replies 

will indicate the appropriate disposition, (e.g., acknowledgement of the report, 

disposition of the materiel, validation of the report with authorization of financial 

adjustment, and/or instructions for repackaging, repair, or other types of corrective 

action). SDR replies made by the action activity may require multiple dispositions 

under certain circumstances.

C17.3.12.1.2.1. Action activities may provide multiple 

dispositions when appropriate and provide disposition instructions for each reply 

code in the remarks field citing the reply code with the associated disposition.

The responder will have to reference the reply code and specify the quantity to 

the corresponding disposition instructions in the remarks field in long text.

C17.3.12.1.2.2. In cases where the assets have Serial Numbers 

(S/N) or Unique Item Identification (UII) requirements, and the action activity 

wants to disposition by S/N or UII, they will provide in the long text the exact 

disposition instructions to the corresponding S/N or UII they desire in addition to 

the systemic disposition.

C17.3.12.1.2.3. When the disposition instructions exceed the 

capacity of the remarks field (800-character limit in WebSDR and 700 in 

Distribution Standard System (DSS)), the action activity will annotate in the 

remarks field that an email was submitted to ddcbsmqn@dla.mil with additional 

information, due to character limits. This action allows for systemic disposition 

and provides evidential matter for an audit trail for the disposition that was sent 

offline. This email only applies to DLA Distribution Created SDR/SQCRs type 5, 8, 

9, and R.

C17.3.12.1.2.4. When the SDR or SQCR disposition 

instructions require that the discrepant item(s) be shipped, the action activity 

must transmit the Material Release Order/Disposal Release Order (MRO/DRO) 

requesting movement or shipment of materiel.
DEDSO Use Only - ServiceNow Change Request: CHG0034848 

Enclosure, ADC 1430 

 Page 2 

C17.3.12.1.2.5 SDR replies must contain the appropriate 

discrepancy code consistent with all information provided by the customer. The action 

activity may need to update the discrepancy codes used by the customer to assign the 

appropriate discrepancy code for the scenario described in the SDR remarks. The 

action activity will identify the disposition/status using the appropriate Reply Code 

(Appendix 7.28) with detailed instructions in the remarks field. Action activities may 

include the applicable Cause Code (CN/CP/CS) in the SDR to provide better visibility of 

the underlying reason for the SDR; cause codes are required for SDR (Document Type 

Code 6/9/P/W) associated with contractor/vendor noncompliance. Upon subsequent 

determination that contractor/vendor noncompliance is not applicable, (e.g., in response 

to a contractor challenge), the item manager must provide a new SDR reply containing 

Reply Code 151 (prior response is superseded) and no cause code (or a replacement 

cause code not associated with the contractor noncompliance).23 Action activities will 

ensure that inappropriate reply codes are blocked from use when responding to 

transshipper SDRs (Document Type Code W).24

[Intervening text not shown] 

C17.3.12.1.2.7. Interim Replies. Interim replies may be used to 

inform the submitter that an SDR has been forwarded to another organization for 

investigation or resolution. Interim replies may also be used to request additional 

information required to determine final disposition. Responsible activities must 

provide an interim reply where a final reply cannot be provided within the established 

time standards as specified in this chapter. Failure to meet the established time 

standards must be caused by reasons outside the control of the ICP/IMM. Such interim 

replies will identify any other action activities involved and, when feasible, indicate when 

additional status will be provided. Identify the interim disposition/status using the 

appropriate reply code. Interim reply codes in the 300 or 500 series are typically used 

to designate an interim reply involving forwarding to another organization (Appendix 

7.28). The storage activity will provide an interim reply when recommending credit be 

provided by the source of supply based upon a validated discrepancy. For this purpose, 

the storage activity will cite Reply Code 525 and forward the SDR using the applicable 

300-series applicable to the source of supply for processing. When the storage activity 

forwards an SDR to the source of supply for action using a 300-series interim reply 

code, the SDR transaction must be formatted to identify the source of supply RIC as the 

action activity. WebSDR will provide notification of forwarding action to the SDR initiator. 

This “forwarding” process and associated format will allow the reply transaction, 

including the initial responder’s reply remarks, to be transmitted to the new action 

activity. WebSDR will recognize the new action activity for reports and Web responder 

role access. If no coding exists to specifically identify the reasons for the delay, select 

Reply Code 137 and provide a clear-text explanation. 
DEDSO Use Only - ServiceNow Change Request: CHG0034848 

Enclosure, ADC 1430 

 Page 3 

23 Refer to ADC 1181A, Implementing the Cause Code for SDRs and Developing a Data Exchange Between 

WebSDR and Past Performance Information Retrieval System-Statistical Reporting Next Generation for 

Contractor Noncompliance SDRs (Supply/SDR) 

24 Refer to Approved DLMS Change 317B, Action Activity Replies to Transshipper-Prepared SDRs